Dive briefs:
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Coca-Cola has entered into a licensing agreement that allows the use of two of its product logos, Minute Maid and Simply, on select products sold by Furtura’s Deika & Hackett brands. This is the first time Coca-Cola has licensed in the fresh food category.
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In the US, Simply Select is used on D&H fresh citrus and Minute Maid garnishes D&H grapes. Minute Maid is also used in D&H fresh citrus and grapes in Japan. Products powered by Coca-Cola’s Simply Select will begin hitting retailers before July, followed by Minute Maid products.
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Brand licensing agreements, once an afterthought for many multi-billion dollar food and beverage manufacturers, are a win-win for CPGs looking to grow their business, build assets, and maintain or expand their product relevance. It is rapidly evolving into a source of income.
Dive Insight:
Coca-Cola’s broad portfolio of brands goes beyond its iconic products to include non-beverage products such as candy, clothing, drinkware, home décor and apparel. But the move to fresh fruit is a whole new way to expand the range of valuable trademarks.
In this case, Coca-Cola has chosen not to utilize brands such as Sprite, Coca-Cola and Fanta associated with sugar. Instead, the Atlanta-based beverage licenses its wholesome juices with Simply and Minute Maid, logically expanding it with fresh fruit. Financial details of the transaction were not disclosed.
Kayla Carlucci, Associate Licensing Manager at The Coca-Cola Company, said in a statement: “When considering licensing our brands, the quality of the products that bear our name is paramount, as is the quality control that our licensees implement at every stage of their supply chain.”
In the case of Coca-Cola, the beverage company’s Simply and Minute Maid brands have gained product recognition in fresh fruit, a section not traditionally present in grocery stores.
This awareness could also help promote Coca-Cola’s original juice products. A shopper sees a bag of grapes with the Minute Maid logo, or a lemon with the Simply logo, and later decides he will buy one of those juices just because he sees the fruit. may be The fruit connection also helps increase consumers’ healthier perceptions of these Coca-Cola products.
Founded in 2005, D&H is a California-based producer, packer and distributor of premium fruit. The company offers citrus fruits such as clementines, lemons, limes, oranges and mandarins. In grapes it works without green, red and black seeds. Using the Coca-Cola trademark immediately increases brand recognition for D&H agricultural products competing with other fresh produce companies.
Tim Deka, CEO of Deka & Hackett, who drafted the licensing agreement on behalf of Furtura, said: “These brands resonate so strongly with discerning consumers that this can increase market penetration in a meaningful way.”
Coca-Cola’s risks include recalls, product quality issues, and other issues related to fruit bearing the Simply and Minute Maid logos that could adversely affect the brand itself and adversely affect original sales. in some cases. product.
Still, licensing has some benefits that outweigh the risks. Licensing a brand is usually quicker and cheaper than if a company decided to develop a product from scratch, with each partner providing a brand name, experience manufacturing or marketing a particular product, an understanding of methods, etc. , can piggyback on the advantages of other partners. Reach connections with specific consumers and industries.